Tokyu Corporation to absorb hotel unit for streamlined operations

Tokyu Corporation, a real estate and diverse business conglomerate, announced on December 26, 2025, a plan to absorb its wholly owned subsidiary, Tokyu Hotels Co., Ltd., effective April 1, 2026. This absorption-type merger will not significantly impact Tokyu Corporation's consolidated financial results. The merger aims to centralize the management of the hotel and resort business, fostering greater efficiency in investment decisions and risk reduction for enhanced profitability.

The merger is a strategic move to optimize asset management and development within the hotel and resort sector, aligning with Tokyu Corporation's three-year medium-term management plan to strengthen its business foundation and boost corporate value. As the surviving entity, Tokyu Corporation will retain its current name, location, and business activities, with no shares or money to be allotted to Tokyu Hotels.

As of March 31, 2025, Tokyu Corporation reported consolidated net assets of JPY 872,295 million and total assets of JPY 2,698,981 million, with an operating revenue of JPY 1,054,981 million. Tokyu Hotels recorded net assets of JPY 3,627 million and total assets of JPY 15,421 million, with net sales of JPY 42,220 million. The estimated assets to be transferred from Tokyu Hotels amount to JPY 17,425 million, and liabilities to JPY 11,603 million.